Staff Report - Council Compensation Final
PREPARED BY: ROBERT SCHULTZ
Town Attorney
Reviewed by: Town Manager, Assistant Town Manager, and Human Resources Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 12/05/2017
ITEM NO: 12
DATE: NOVEMBER 27, 2017
TO: MAYOR AND TOWN COUNCIL
FROM: ROBERT SCHULTZ, TOWN ATTORNEY
SUBJECT: REVIEW, DISCUSS, AND PROVIDE DIRECTION REGARDING A POTENTIAL
INCREASE IN TOWN COUNCIL COMPENSATION
RECOMMENDATION:
Staff recommends that the Town Council consider the information provided with respect to
Town Council compensation and provide direction.
BACKGROUND:
Government Code Section 36516 establishes a maximum compensation for general law cities’
elected officials based on the cities’ population. The law provides that for general law cities
with a population up to 35,000, Council members may receive a compensation of up to $300
per month. Town Code Section 2.20.025 pertains to Town Council salaries and references this
California Government Code section.
In addition, Government Code Section 36516(a)(4) allows for a Council compensation increase
which “shall not exceed an amount equal to five percent for each calendar year from the
operative date of the last adjustment of the compensation in effect when the ordinance or
amendment is enacted. No ordinance shall be enacted or amended to provide automatic future
increases in compensation.” In other words, the law allows for a cost of living adjustment to be
applied each year, but the Town cannot provide automatic future increases in compensation.
Currently, Town Council members receive bi-monthly compensation in the amount of $75.00
and an auto allowance in the amount of $25.00 for a total of $200 per month. Town Council
members also have the opportunity to receive medical, dental, and retirement benefits , but
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SUBJECT: REVIEW AND DISCUSSION OF POTENTIAL INCREASE IN TOWN COUNCIL
COMPENSATION
NOVEMBER 27, 2017
BACKGROUND (Continued):
these amounts are not included for purposes of determining compensation under Government
Code Section 36516.
DISCUSSION:
It is appropriate from time to time to review compensation levels and determine if
compensation levels are fair or if an adjustment is appropriate; however, it appears that the
Town has not been reviewing Town Council compensation on a regular basis. In fact, the
compensation for Town Council members has not been adjusted since June 1981, when the
Town Council authorized a car allowance of $50.00 per month.
Pursuant to Government Code Section 36516, the Town Council may not increase its
compensation by more than 5%, non-compounded per year, since the effective year of the last
adjustment. Council’s salary was last adjusted in 1981 when it granted a car allowance of
$50.00. Therefore, the maximum increase allowed under State law is 185% (5% x 37 years) and
the maximum permitted compensation for the Town Council would be $ 570 per month (the
existing $200 plus the aggregated $370).
Any increase in Council members’ compensation requires an affirmative act of the Town
Council. Pursuant to Government Code Section 36516.5, any change in compensation adopted
by resolution would not take effect until the start of a new term of any one Council member,
including Council members who may be re-elected. The start of a new term would occur in
December of 2018, following certification of the election results.
Staff has located a recent compensation survey for California mayors and Council members
conducted by the City of Berkeley in 2014 (see Attachment 1). The survey provides a sampling
of 43 cities and considers both general law and charter cities. Salaries may have been adjusted
since the 2014 study; however, the study still provides a useful analytical tool. In addition, our
Town Clerk has done a compensation survey (see Attachment 2) for your review and
consideration. Los Gatos Council members have among the lowest compensation. The City of
Monte Sereno provides no compensation to its Council. Los Altos Hills Council members
currently receive $250 per month and effective December 2018, the monthly compensation
increases to $300.
CONCLUSION:
Given the legislative and fiduciary responsibilities of Council members, frequency of Council
meetings, and related obligations, staff recommends that the Town Council direct staff to
return with a resolution adopting an increase Town Council members’ monthly compensation
in an amount determined by the Town Council.
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SUBJECT: REVIEW AND DISCUSSION OF POTENTIAL INCREASE IN TOWN COUNCIL
COMPENSATION
NOVEMBER 27, 2017
ALTERNATIVES:
Instead of approving the staff recommendation, the Council may:
1. Direct staff to address additional issues prior to returning to Town Council; or
2. Maintain the current compensation; or
3. Take another action.
ENVIRONMENTAL ASSESSMENT:
It has been determined that there is no possibility that this project will have a significant impact
on the environment; therefore, the project is not subject to the California Environmental
Quality Act [Section 15061 (b)(3)].
FISCAL IMPACT:
There are no immediate financial impacts associated with this item. If the Council approves the
proposed resolution, funds will be included in the Fiscal Year 2018/19 and subsequent
operating budgets.
Attachments:
1. Berkeley 2014 Mayor and Council Members Compensation Survey
2. Town Clerk Mayor and Council Members Compensation Survey